Pound Could Climb After UK Growth Data

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Pound Sterling

As the European session opened the Pound was trading within easy reach of an eight-month high against the ‘Greenback’ and close to an over seven-month high against the Euro. The British currency was bolstered by the expectation that today’s report will confirm that the UK economy expanded by 0.7 per cent in the second quarter. If the data meets expectations the Pound could see further gains as the day progresses.

GBP/EUR is trading in the region of 1.1897 and GBP/USD is trading in the region of 1.6089

US Dollar

For the first time this week the US Dollar posted an overnight gain against the Yen as unconfirmed reports that Japan’s government intends to study a corporate tax cut piled pressure on the Asian asset. With economists predicting that today’s US growth report will show larger than initially estimated expansion in the second quarter, the ‘Greenback’ was supported the against several of its other rivals.

USD/GBP is trading in the region of 0.6222 and USD/EUR is trading in the region of 0.7398

Euro

While yesterday’s better-than-forecast German consumer confidence figures helped the Euro climb, the common currency was later knocked by comments issued by the Spanish Prime Minister. Mariano Rajoy stressed that a weaker Euro would benefit Spanish exports, and the currency consequently softened against the US Dollar and Pound.

EUR/GBP is trading in the region of 0.8405 and EUR/USD is trading in the region of 1.3523

Australian Dollar

Rallying Asian stocks helped the Australian Dollar advance on the ‘Greenback’ for the first time in two days. As influential Australian news has been a bit lacking this week, the ongoing speculation surrounding the US debt ceiling and global economic data will be the main triggers for ‘Aussie’ movement before the weekend.

AUD/GBP is trading in the region of 0.5846, AUD/EUR is trading in the region of 0.6939 and AUD/USD is trading in the region of 0.9391

New Zealand Dollar

After tumbling against its main rivals after New Zealand’s trade deficit expanded unexpectedly, the ‘Kiwi’ rallied during local trading. With the odds of the Reserve Bank of New Zealand raising interest rates increasing, the South Pacific asset edged away from a week low against the US Dollar and climbed against its British and Eurozone cousins.

NZD/GBP is trading in the region of 0.5125, NZD/EUR is trading in the region of 0.6097 and NZD/USD is trading in the region of 0.8286

Canadian Dollar

Crude oil concerns and US debt-ceiling issues left the commodity-driven Canadian Dollar brushing a one-week low against its US counterpart during the local session. US news is likely to dictate additional ‘Loonie’ movement before the publication of Canadian average weekly earnings data on Friday.

CAD/GBP is trading in the region of 0.6026, CAD/EUR is trading in the region of 0.7170 and CAD/USD is trading in the region of 0.9696

These exchange rates were correct as of 09:10 am

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.